Let's say for example, a babysitter MFJ (or any other self employed) is reporting 30k (or any other amount that makes my question relevant below) on her tax return on a schedule C. She lives in New Jersey and has 3 kids. They also pay 4k for dependent care for their kids.
Obviously the new qbi rule will let then lower their taxable income, and then the rest of their tax, if any, will go away via the 2441 dependent care credit and child tax credit.
Being that NEW JERSEY is allowing a new dependant care credit that is based as a percentage of the federal credit, you would want your federal 2441 credit to be as high as possible, so that it would help you for the NJ credit, since the nj credit is a percentage of the federal credit.
QUESTION? On your federal tax return, is there a way/ are you allowed to decline to take the QBI DEDUCTION? By doing so, you would rather knock out your tax liability by using the 2441 dependent care credit, thus having a bigger credit to utilize for your NJ return.
Is this allowed? If yes, how to do it?